Telemarketing

AAA

DEFINITION of 'Telemarketing'

The act of marketing goods or services to potential customers over the telephone. Telemarketing may either by carried out by telemarketers, or increasingly, by automated telephone calls or "robocalls." The intrusive nature of telemarketing, as well as reports of scams and fraud perpetrated over the telephone, has spurred a growing backlash against this direct marketing practice.


Also known as telesales or inside sales.

INVESTOPEDIA EXPLAINS 'Telemarketing'

The United States and Canada have national "Do Not Call"(DNC) registries that give their residents a choice about whether to receive telemarketing calls at home. In the United States, the registry is managed by the Federal Trade Commission (FTC) and enforced by the FTC, Federal Communications Commission and state law enforcement officials.


Consumers who are registered in the DNC database can file a complaint if they receive a call from a telemarketer, which could lead to a stiff fine and sanctions for the telemarketing firm. However, calls from charities, political organizations and telephone surveyors are permitted and would be received by a consumer, despite listing his or her phone number on the DNC registry. Also permitted are calls from businesses with whom the consumer has an existing relationship, as well as those businesses where consent to call has been provided in writing.


In recent years, numerous North American firms have outsourced their telemarketing functions to lower cost jurisdictions such as India, Mexico and the Philippines.

RELATED TERMS
  1. Direct Marketing

    A form of advertising in which physical marketing materials are ...
  2. Cold Calling

    The solicitation of potential customers who were not anticipating ...
  3. Viral Marketing

    Internet advertising or marketing that spreads exponentially ...
  4. Dialing and Smiling

    A telemarketing technique in which unsolicited, or "cold" calls, ...
  5. Boiler Room

    A place where high-pressure salespeople use banks of telephones ...
  6. Federal Trade Commission - FTC

    An independent federal agency whose main goals are to protect ...
RELATED FAQS
  1. How can a business determine its most effective value proposition?

    To determine its most effective value proposition, a company must make a purposeful effort to craft a unique value proposition ... Read Full Answer >>
  2. What is a boiler room operation?

    In the context of investing, the term "boiler room operation" refers to the use of high pressure sales tactics to sell stocks ... Read Full Answer >>
  3. What should be included in a restaurant business model?

    The most important elements of a restaurant business model include the restaurant's unique value proposition, menu choices, ... Read Full Answer >>
  4. What do you need to know to create a business model?

    A business model lays out the idea for a business, along with the step-by-step plan for making the business profitable. To ... Read Full Answer >>
  5. What level of return on assets should an investor look for in the insurance sector?

    Marketing plays an important role to a company in the utilities sector. Many people fail to understand why utility companies ... Read Full Answer >>
  6. What are the benefits of investing in a money market fund?

    The U.S. Department of Justice, or DOJ, and the Federal Trade Commission, or FTC, use the Herfindahl-Hirschman Index, or ... Read Full Answer >>
Related Articles
  1. Professionals

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.
  2. Professionals

    Tips For Fitting In At Your Brokerage Firm

    Part of starting a successful career as a broker is finding the right place to work.
  3. Brokers

    Alternatives To The Cold Call

    Want to build your business as a financial professional? We provide some choice advice.
  4. Retirement

    Cold Call Without Getting The Cold Shoulder

    Learn how to warm up prospective clients to your business and your abilities.
  5. Personal Finance

    The Top 6 Companies Owned By Google

    Google owns an incredible number of companies. These are its top six acquisitions.
  6. Professionals

    Why Advisors Should Focus on Relationships

    Successful financial advisors share a secret: It's about the people, not the numbers.
  7. Personal Finance

    The Top 11 Companies Owned By Facebook

    These 11 acquisitions show how big, and how rich, Facebook has become.
  8. Economics

    Understanding Marketing

    Marketing includes all of the activities of a company associated with buying and selling a product or service.
  9. Economics

    How Big Data Has Changed Marketing

    Big data has enabled marketers to enhance their customer engagement and customer retention strategies by providing insight into behavior and thoughts.
  10. Investing News

    Cost-Free Connection Of Target Groups To Marketers

    ZipDial spotted a niche marketing opportunity in the area of “missed calls” and developed a business around it. Here is how ZipDial works and its benefits.

You May Also Like

Hot Definitions
  1. Fracking

    A slang term for hydraulic fracturing. Fracking refers to the procedure of creating fractures in rocks and rock formations ...
  2. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  3. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  4. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  5. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  6. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
Trading Center